Recommendation 20

We were concerned that some energy customers have been disproportionately affected by the energy crisis. For example, we noted that some vulnerable customers rely on prepayment meters but it costs more to administer the cost of energy paid by prepayment than by direct debit, which is reflected in the prices these customers pay. Some vulnerable 40 C&AG’s Report, para 2.14; Ofgem, Ofgem updates price cap level and tightens up rules on suppliers | Ofgem, Press release, 26 August 2022 41 Qq 87–89 42 Q 59 43 Q 21 44 Q 60 45 C&AG’s Report, para 3.23 46 Qq 55, 59–60 47 Ofgem, Ofgem confirms changes to the price cap methodology and frequency ahead of new rate to be announced later this month, Press Release, 4 August 2022 Regulation of energy suppliers 15 customers are therefore having to cope with the increase in wholesale prices this year, while at the same time also paying extra on top of that due to their method of paying for energy.48 Other groups of customers have also been disproportionately affected by the crisis. For example, energy provided through district heating systems, where heat is distributed to surrounding homes from a central source, is not covered by the price cap and customers are therefore not protected from price rises.49